- The State Secretary has suspended the transitional law regarding the VAT increase on media, culture, and sports from the Tax Plan 2025 through a policy decision
- During the suspension, VAT for the supply or service remains due at the reduced rate of 9%
- From January 1, 2025, entrepreneurs would be liable for VAT at the general rate for payments and transfers of vouchers under the transitional law in the Tax Plan 2025
- The minister does not wish to tax these payments and vouchers at the general VAT rate starting January 1, 2025
- Ahead of legislation, the State Secretary approves that the transitional arrangement included in article LXII of the Tax Plan 2025 remains unapplied until July 1, 2025, for payments and transfers of vouchers related to the supply of goods and services specified in the posts of Table I of the VAT Act
- Payments in 2025 for services and transfers of single-use vouchers related to services in post b.11 will fall under the transitional arrangement if these services occur on or after January 1, 2026
- For these payments, VAT is due at the general rate from January 1, 2025
- Suspending the transitional law results in a one-time budgetary loss of EUR 135 million
- This loss is compensated by increasing the rate of the first and second brackets in the Income Tax by 0.03 percentage points for one year in 2026
Source: futd.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
